Growing demand for high bandwidth, increased data storage needs and continued high interest in disaster recovery wi...
December 10, 2004
Growing demand for high bandwidth, increased data storage needs and continued high interest in disaster recovery will be key business themes for Toronto Hydro Telecom (THTI) heading into 2005.
Speaking to a group of media and industry experts earlier this week, company president Ian Miles said that demand for bandwidth among large companies has been predicted to grow by 50-100% through 2008.
“Cost per unit of bandwidth has declined considerably over where it was three years ago,” he said. “If companies haven’t looked at higher bandwidth solutions lately they will be surprised by how much capacity they can actually afford today.”
As a result of growing bandwidth demand, telecom providers are expected to invest in optical transport networks such as SONET (synchronous optical network) and WDM (wavelength division multiplexing).
Miles added that the convergence of voice, data and video to the Internet is not proceeding as rapidly as expected — at least not among the firm’s customers.
“Cost is a big barrier to moving telephone systems to the Internet (Voice-over-IP) because of the new equipment required,” said Miles. “Some companies are doing it for internal systems, but very few have migrated their external phone systems to the Internet.”
Events such as 9/11, SARS, power outages and computer system failures have made disaster recovery planning critical for businesses today.
In 2004, an estimated 35% of THTI’s business and 60% of new sales were related to disaster recovery plans.
“For disaster recovery purposes we are seeing more downtown firms locating their data centres away from the city core and these initiatives require the reliable high-bandwidth connections we can provide,” Miles said.